This loan program is designed for home-buyers (purchase transaction) and home-owners (refinance transaction) that do not want to provide (Form 4506-T not required) or are unable to produce (business and/or personal tax returns, W-2's, paycheck stubs, lease agreements, etc..) traditional income documentation; have been on their job/profession/a business owner for less than 2 years; have a major credit event on their credit report (Non-Prime) such as a bankruptcy, foreclosure, short-sale, loan modification, or automobile repossession; have a Full Doc debt to income ratio higher than 43% or would like a more flexible term such as a 40-year amortization payment with or without an "interest-only" payment option or just happen to fall outside the credit (depth or seasoning) guideline requirements of a Qualified (QM) or "prime" jumbo mortgage loan.

Creative "Ability-to-Repay" (ATR) Financing:

Asset Utilization and/or Cash-Flow (bank statements) Loan Program 

Loan Amount: $3,500,000

Borrower Credit Profile:

  • Cannot provide conventional "Full Doc" income documentation
  • Unseasoned (<2 years) employment history
  • Unseasoned credit event (bankruptcy, foreclosure, short-sale, loan modification
  • >43% Debt-to-Income (DTI) ratio

Loan Purpose percentage of financing:

  • Purchase - 10% Down Payment
  • Rate/Term Refinance - 90% LTV
  • Cash Out Refinance - 85% LTV

Income Documentation Program - 2 Options:

"Alt-Doc" (self-employed): Bank Statements and/or Asset Depletion/asset utilization

  • 24 Months Business bank account
  • 12 Months Personal bank account
  • Asset Depletion (asset utilization)

"Low Doc" (self-employed and W-2): Reduced Doc

  • 1 year W-2 and/or 1-year tax return
  • Self-Employed - "Borrower Prepared" (and unaudited)YTD Profit & Loss (P&L)

Alt-Doc and Low Doc programs are for the primary and self-employed borrower.

  • Co-borrower W-2 employee OK for Low Doc - 1 year W-2 in lieu of the traditional 2-year requirement

Debt-to-Income ratio: (DTI) 55% based on bank statement cash-flow, liquid asset reserves (stand-alone or in conjunction with bank statements) liquid assets, cash-flow, and real estate portfolio equity

Credit Notes:

Mortgage Credit Score:

  • 660 minimum middle score or lower of 2 scores


  • Bankruptcy - 3 years from discharge date
  • Foreclosure - 2 years
  • Short-Sale - 2 years
  • Loan Modification - 2 years


Reference # - 1245587